An insurance startup aimed at the gig economy today said it is the first insurtech firm in the UK to secure an insurance licence.
Zego, which offers flexible insurance to freelance workers such as drivers for Uber or riders for Deliveroo, said it was awarded the licence by the Gibraltarian regulator.
Chief executive Sten Saar told City A.M. it will allow the startup to act faster than it could under the banner of other insurers, meaning it can speed up innovation of its product while also lessening the risk impact.
“This is a huge milestone for Zego and a clear signal that we are here to stay. The licence is also an essential ingredient in our mission to transform the insurance sector, by creating flexible policies which better reflect risk and truly cater to the fast-evolving world of mobility,” he added in a statement.
“We have already started selling our own products but will continue to partner with other insurance companies, with this collaboration still a crucial part of our business model.”
The licence will also allow Zego to collate and share data with its insurance partners. The firm is backed by 15 reinsurers, including Swiss Re.
Zego secured $42m (£32.7m) in series B funding earlier this year to fuel its expansion across Europe.
It is currently available in five countries, with investment from Target Global and Transferwise chief Taavet Hinrikus.
Image credit: Zego